How to file part-time TN income on taxes
Moderator: Mark T Serbinski CA CPA
How to file part-time TN income on taxes
Hi,
I'm currently on a full-time TN and my income is taxed accordingly by the employer.
I took on additional part-time TN contract work in my field. I have been paid in full (untaxed). How do I claim this income on my tax return and how can I figure out how much I would owe?
My first thought is that it's reported as self-employed income but that would conflict with the TN would it not?
Any info would help. Thanks!
I'm currently on a full-time TN and my income is taxed accordingly by the employer.
I took on additional part-time TN contract work in my field. I have been paid in full (untaxed). How do I claim this income on my tax return and how can I figure out how much I would owe?
My first thought is that it's reported as self-employed income but that would conflict with the TN would it not?
Any info would help. Thanks!
Anything else....
Seriously, this is self-employed income, plain and simple.
Self-employment is not forbidden under TN, otherwise you would not have been granted your second TN.
Besides, even if it was illegal, not reporting it as such would make the problem worse.
You should make quarterly probably make estimated payments to IRS, about 25% of your gross, every three months. This will cover your income tax and self-employment taxes.
Unlike Canada, if you grossly underwithhold your IRS taxes during the year, you face penalties at tax time, even if you remit the balance on time.
So, I would be sending some in as soon as possible.
Seriously, this is self-employed income, plain and simple.
Self-employment is not forbidden under TN, otherwise you would not have been granted your second TN.
Besides, even if it was illegal, not reporting it as such would make the problem worse.
You should make quarterly probably make estimated payments to IRS, about 25% of your gross, every three months. This will cover your income tax and self-employment taxes.
Unlike Canada, if you grossly underwithhold your IRS taxes during the year, you face penalties at tax time, even if you remit the balance on time.
So, I would be sending some in as soon as possible.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Thanks as always Nelson,
My one out appears to be this:
http://www.irs.gov/publications/p505/ch ... 1000194557
"Will your income tax withholding and refundable credits be at least 90% of the tax shown on your current return"
If yes, you do not have to pay estimated tax.
I will be pretty close since I work salaried full-time and if I pay my august estimated withohlding along with my home office deductions my income tax witholding will probably be 90% or greater of the total tax I'll need to pay.
That means how much I expect to be federally taxed in this year correct?
My one out appears to be this:
http://www.irs.gov/publications/p505/ch ... 1000194557
"Will your income tax withholding and refundable credits be at least 90% of the tax shown on your current return"
If yes, you do not have to pay estimated tax.
I will be pretty close since I work salaried full-time and if I pay my august estimated withohlding along with my home office deductions my income tax witholding will probably be 90% or greater of the total tax I'll need to pay.
That means how much I expect to be federally taxed in this year correct?
http://apps.irs.gov/app/withholdingcalc ... index5.jsp
I used the above IRS calculator and got the following:
Based on your responses, your anticipated income tax for 2014 is $22,954. If you do not change your current withholding arrangement, you will have $21,573 withheld for 2014 leaving $1,381 due when you file your return.
So it appears my withholding tax will be well above 90% (94.0%) of tax shown on my 2015 return and this is without any deductions...
I used the above IRS calculator and got the following:
Based on your responses, your anticipated income tax for 2014 is $22,954. If you do not change your current withholding arrangement, you will have $21,573 withheld for 2014 leaving $1,381 due when you file your return.
So it appears my withholding tax will be well above 90% (94.0%) of tax shown on my 2015 return and this is without any deductions...