Estimated self-employed taxes for Rhode Island?

Question

I am trying to figure out someone's estimated self-employed taxes for 2009 in Rhode Island. This person was a W2 employee during majority of the 1st quarter, then became owner of partnership. He wants me to figure out his estimated self-employed taxes to pay quarterly for this year. I am using the 2009 RI-1040ES form and not sure if I only include guaranteed payments or do I also include the W2 wages as well? 1st line says Modified Federal AGI which I assume would include W2 wages. Any help is greatly appreciated & earns best answer! Thank you!!

123456789 · Accepted Answer

Guaranteed payments and also if he's getting a portion of the profit, if any.

Assuming his W-2 wages would have already had sufficient tax withholding, don't include W-2 wages in the estimate (you can, if you'd want to be on the safe side)

"1st line says Modified Federal AGI which I assume would include W2 wages"

There is no self-employment tax on the state; only on the federal level.

This is more for the tax return, state generally always carry the federal AGI before performing the state tax calcs.  For quarterly estimate purposes, use state allocated earnings.

? · Answer

the same as for your federal sch C and no, the items you are mentioning are not deductible if you maintain a contemporaneous log of the miles you drive for business, those are deductible, but you already have to eat and wear clothes, just because you are now independent doesn't change that if you take someone to lunch or dinner where you discuss business, keeping the receipt, with the name of the person and the business subject, half is deductible

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Estimated self-employed taxes for Rhode Island?

2 Answers