Can someone help me figure out how much in taxes I owe for working?

[LordJezo]

52k a year.

NJ.

Self employeed.

Any ideas? I have no clue. Federal and state and all the rest of the taxes I owe the man.

 

[5ayle]

2 pcs. of advice

1)Hire a pro

2)do not ask ATOT

I charge you $5 (tax deductable)

 

[aolj]

Originally posted by: 5ayle
2 pcs. of advice 1)Hire a pro 2)do not ask ATOT I charge you $5 (tax deductable)

^
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What he said.

 

[Alchemist99]

30% =15,600

 

[EagleKeeper]

Originally posted by: LordJezo
52k a year.

NJ.

Self employeed.

Any ideas? I have no clue. Federal and state and all the rest of the taxes I owe the man.

1) collect any paperwork on what you have spent this year, including AT related (computer, net access, HotDeals, etc.)
2) collect any paperwork relating to rent/mortage utilities
3) collect any paperwork relating to auto/travel expenses including insurance/repairs.
4) collect any paperwork relating to expenses regarding clients (Sports, meals, etc)

Get a Tax S/W package or pay H&R block $300-500

 

[badmouse]

Can't answer the question without knowing your business expenses. Income minus expenses equals profit. Profit is taxable.

Get a good accountant ASAP.

 

[DrPizza]

definitely get a good accountant... you can write all sorts of stuff if self-employed at home... portion of your mortgage, utilities, maintenance, etc.

good luck!

Try a free online tax prep place.

 

[EagleKeeper]

Originally posted by: DrPizza
definitely get a good accountant... you can write all sorts of stuff if self-employed at home... portion of your mortgage, utilities, maintenance, etc.

good luck!

Try a free online tax prep place.

You do not need an accountant for that amount of income.

Follow my guidelines as posted above, PM me is more info desired.
Have been doing this for past 10 years - self employed S/W Engineer

 

[rahvin]

At 52k a year if you haven't been making quarterly estimated tax payments you are going to be hit with penalties and interest.

 

[Hammer]

Originally posted by: rahvin
At 52k a year if you haven't been making quarterly estimated tax payments you are going to be hit with penalties and interest.

 

[dman]

If it's the first year being self employed, might be able to 'workaround' that. I suggest an accountant. Tax programs are good, but, if you don't know what to look for you might miss a few deductions that you qualify for... or take a few that you don't (which won't hurt unless/until they audit you, and then it could be quite painful).

If you were doing personal taxes I'd say do it yourself, but, business stuff I recommend an accountant of some sort. Well worth the investment, imo.

 

[EagleKeeper]

Originally posted by: rahvin
At 52k a year if you haven't been making quarterly estimated tax payments you are going to be hit with penalties and interest.

This will depend on how much he can write off. The 127 will allow a good amount to be dropped off immediately.
Auto purchase/cost/expenses can remove more.

Most Tax S/W will step him through this area. He just needs to pay close attention.

I suspect that he will be able to skate under the radar.

Was all the 52K reported on 1099s?

 

[Mutilator]

You can get a very rough estimate here.
It says $7866 - expect to add several $$$$ to that though.
More calculators.

 

[Vic]

Hopefully he has A LOT of write-offs. If you owe the Feds more than $1k after the 1st of the year, including Self-Employment tax, then you start paying penalties (although the penalties start small and then get a lot bigger the more you owe).

Hope you paid some quarterlies or saved up some money, LordJezo, cause you could be in for bad times with the IRS ahead 🙁

 

[CPA]

For those of you estimating his taxes - STOP.

LJ, you have not nearly provided enough information for any of us to even estimate you taxes. Eaglekeeper has given you some good advice, go with it. And I recommend taxact.com for a good, cheap tax program.

 

[Vic]

Originally posted by: Mutilator
You can get a very rough estimate here.
It says $7866 - expect to add several $$$$ to that though.

He's self-employed, so you forgot the Self-Employment tax for Social Security of 15% (W-2 employees split their Social Security burden with their employers, the self-employed have to pay the whole thing). So add on another $7,800. Then state taxes... 🙁

The good news though is that the self-employed can take true tax write-offs. Not deductions, but write-offs, which are calculated before AGI (adjusted gross income) and can significantly reduce your tax liability. Hopefully, he is like most self-employed people and has quite a few of those.