FAQ

How do you file for taxes if you were an employee then became self-employed within the same year? Do you fill out the w2 and 1099?
The W-2 form is one of the most frequently used forms by taxpayers. Taxpayers also know it by another definition — the Wage and Tax Statement. This document is filled by an employer for their employees. Being quite short in size, the form is still very informative and extremely important for taxpayers as the data it contains is used to complete tax return forms.W-2 Form: Fillable & Printable IRS Template Online | PDFfillerThe self-employed person or freelancer should complete the W-9 form correctly, as it includes details, used to fill out 1099-MISC. The minimal sum, necessary for reporting with this sample is $600. The facilities and job, the companies do for you annually are not reported with this sample, as in the majority of cases they are less than six hundred dollars.Form 1099-MISC: Fillable & Printable IRS Template Online | PDFfiller
How does one dispose fixed assets on 1120-S before these assets are fully depreciated?
For an 1120S, you need to fill out forms:4562 Depreciation and Amortization - Where you will depreciate the property through the date is was destroyed. Any current year depreciation will flow onto line 14 on page one of the return. 4684 page 2 Casualty Theft and Losses - Where you will detail your loss. Make sure to recapture all depreciation. This amount will carry onto Schedule K1, (or divided on multiple K1s per shareholder percentages) line 10, with Code B to be reported on the shareholder's 1040. Note - there should be nothing from this transaction entered on form 4797 and nothing from this transaction should be entered on line 4 on page one of the return. Your software may have to be overridden to make this happen. Hope that helps!
Which forms do I fill out for taxes in California? I have a DBA/sole proprietorship company with less than $1000 in profit. How many forms do I fill out? This is really overwhelming. Do I need to fill the Form 1040-ES? Did the deadline pass?
You need to file two tax returns- one Federal Tax Form and another California State income law.My answer to your questions are for Tax Year 2018The limitation date for tax year 15.04.2018Federal Tax return for Individual is Form 1040 . Since you are carrying on proprietorship business, you will need to fill the Schedule C in Form 1040Form 1040 -ES , as the name suggests is for paying estimated tax for the current year. This is not the actual tax return form. Please note that while Form 1040, which is the return form for individuals, relates to the previous year, the estimated tax form (Form 1040-EZ ) calculates taxes for the current year.As far as , the tax return under tax laws of Californa State is concerned, the Schedule CA (540) Form is to be used for filing state income tax return . You use your federal information (forms 1040) to fill out your 540 FormPrashanthttp://irstaxapp.com
What tax forms do I need to fill out for reporting bitcoin gains and loses?
IRS1040 and 1099 forms.“For instance, there is no long-term capital gains tax to pay if you are in the lower two tax brackets (less than $36,900 single income or less than $73,800 married income). The capital gains rate is only 15% for other tax brackets (less than $405,100 single income) with 20% for the final bracket.”Reference: Filing Bitcoin Taxes Capital Gains Losses 1040 Schedule DOther References:IRS Virtual Currency Guidance : Virtual Currency Is Treated as Property for U.S. Federal Tax Purposes, General Rules for Property Transactions ApplyHow do I report taxes?Filing Bitcoin Taxes Capital Gains Losses 1040 Schedule Dhttps://www.irs.gov/pub/irs-drop...
How do you itemize taxes? Can I write off my property taxes at the end of year? What can I write off?
Assuming this is about US Federal taxes:You fill out Schedule A (https://www.irs.gov/pub/irs-pdf/...) and attach it to your tax return, and copy the total into line 40 of form 1040. This only makes sense if your total is more than your standard deduction (depends on your filing status, between $6,300 and $12,600).What you can itemize:Property taxesMortgage interestState income taxesCharitable donationsA number of miscellaneous deductions, but a lot of them have further limitations
How do to deduct business expenses as a freelancer?
When tax time comes around, you don’t want to miss a single penny that you could be saving through deductions for freelancers and the self-employed. Of course, you also don’t want to end up getting audited because you didn’t pay close enough attention to the details of the tax law. If you educate yourself early on so you fully understand what deductions you are (and aren’t) eligible for, you’ll be much better off when it comes time to pay Uncle Sam. Here are some ideas to help you get started on understanding tax deductions for freelancers (and don’t hesitate to hire an accountant if you need one).Affordable Online Invoicing and Expense Tracking for FreelancersConsider the DetailsIf you’re going to bother taking business deductions at all, you might as well record each and every single thing that counts throughout the year. Domain and web hosting, a percentage of your telephone and internet expenses, apps or online tools, like invoicing services, advertising, office supplies, business meals, insurance, auto expenses, medical expenses, education related to your business, business interest, bank fees, legal and professional fees, and retirement contributions can all be counted toward your deductions. Make sure that you’ve got an easy way to record your business expenses so that you can quickly tally them up and report them when tax time comes around. There are many software programs and even mobile apps available so you can keep track on the go.Don’t Rely on Big Deductions If You Don’t QualifyMany freelancers hope to be able to deduct their home office. That’s your home, right? The whole thing? After all, you’re just as likely to be working at your kitchen table eating cereal as you are in your bed with Netflix in the background, so you might be hoping to deduct the cost of your electricity, natural gas, the Internet, and everything else you spend on your home (does rent count?). Unfortunately, that’s not how it works. In order to deduct the cost of maintaining a home office, you must have a separate room that you use only for business–nothing else. You have to use that room for business on a regular basis, and you need to spend the most time in your office, not working in another location. So if you’re a photographer who spends more time at client’s’ weddings than you do editing photos in your office, this is one deduction you’re not going to be able to take. This is just one example of a big surprise you don’t want to have when tax time comes around, so don’t count on tons of money unless you’ve looked at the tax law very, very carefully.Plan for the FutureIn studying up on the deductions that you’ll be able to take this time, you may discover that you could have gone to that conference or taken that personal development class that you thought you wouldn’t be able to afford. You can write off travel to attend a trade show or meet with a client in person, educational seminars you’ve attended that relate to your business, purchase or pay a monthly fee for invoicing software to keep your clients paying on time, and many, many other useful and enjoyable products and services. If you didn’t keep careful records this year, do it next year so that you don’t overpay and you can plan more advantageous business purchases for the future.Get an Accountant to Help You Work out the DetailsEven after reading and studying up on your own, talking to business associates, and scouring the internet for relevant information, you may realize that you still don’t feel completely certain what you’re eligible to deduct. A certified public accountant or bookkeeper will be far more capable of helping you understand every deduction that you’re eligible to take and even prepare you to be able to take more in the future. Whether they help you to understand how you can keep better records, how you can take more deductions in the future by making changes to your business, or simply straighten things out this time so you aren’t at risk of an audit, they’ll be well worth the money you spend to pay them (which, by the way, is also a deductible expense).Want more effective tips on invoicing ? Be sure to check out our blog for Freelancer - Sighted Blog.
How do you fill out a 1040EZ tax form?
The instructions are available here 1040EZ (2014)
How do I avoid double taxation as an American living in the Netherlands with a Dutch business?
This is one of the real misconceptions of USA taxation. The US has a tax treaty with the Netherlands. Accordingly, as a US citizen you will pay two taxes. Consider the following fiction. Remember the Netherlands has higher taxes than the USA.Tax on worldwide income to the US $50,000.Tax on income to the Netherlands $75,000.So you file both sets of taxes. You’d pay the Netherlands tax of $75,000 which gives you a credit of $75,000 to offset the US tax of $50,000 and thus you pay NOTHING to the US.Now this is an ideal world situation and it NEVER works out this nicely and is obviously much more complex - however based on my experience the real world results to not vary drastically from this.NOTE that you do have to file 2 tax returns. This is the usual situation that I find with ex pats from the USA so getting all upset about FILING two taxes is really a moot point.
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