I don't understand how to do my 1040 and estimated tax payments. Can I get help understanding?
I may be starting a job here soon as a 1099 contractor. I have never done this before, and have no clue how to do taxes for such a thing. I have lots of questions. Do I have to actually fill out a copy of my a 1040 or can I just pay my EIT quarterly? Since I am starting my contracting THIS YEAR, do I even have to do EIT at all (all the 1040 forms I find online say 2017)? I get that i need to file my 1099 at the end of the year, and then my 740 (i live in KY). Are there any other forms, procedures, etc that i should know about? Sorry for the long question.
Anonymous2018-06-26T21:54:26Z
as said ask your tax guy CPA is good, your base tax bracket say it is 30% to make it easy put aside the 30% out of every check and leave it till years end --- I do not make deposits qtrly
The deposits are to help people who cannot (most people) save the money for years end if you do not get the deposits just right the fine is only $50.00 (or so) BUT the fine goes if you overpay or underpay and chances are you will not hit it on the dollar and pay the fine no matter what.
Contractor is NOT as bad as some say you really do not pay more,, what you pay is the other 7.5 % of the full 15% of social security that usually the employer pays, that really is it. the savings to the company could mean they save a lot more,, worker comp cost can be huge depending on the trade.... this savings on their side is how they pay more base than if you were a salary payroll employee,, that saving can be split with you they come out ahead and you come out ahead
the only real drawback is if you fail to pay the taxes a year end (because you did not put the money aside for years end)
I will say do not make plans to make payments to the IRS at the end of tax year for last years taxes--- save the money write the check and do it every year ... but if it is something you cannot manage make the deposits ,, CPA will create the estimate based on your estimated income
this is not a license to cheat on your taxes,,, do not cheat on your taxes
If you are bad at managing money ... this is not the job for you