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How is a stripper supposed to pay taxes, she is 1099
Posted on 1/11/10 at 1:10 pm
Posted on 1/11/10 at 1:10 pm
anyone can help?
quarterly or yearly
quarterly or yearly
This post was edited on 1/11/10 at 1:16 pm
Posted on 1/11/10 at 1:22 pm to reluctantBR
If he/she has a tax liability of more than $1,000, they're supposed to file quarterly estimated taxes.
Posted on 1/11/10 at 1:24 pm to Martavius
how does she estimate her taxes, she does not get a 1099 every 3 months?
Posted on 1/11/10 at 1:33 pm to reluctantBR
I'm not a CPA but I believe she will file her 2009 tax return and then the IRS will require her to pay 4 quarterly payments next year equaling 90% of her 2009 tax liability. She will still have to file a return at the end of the year and make up or get back any difference though.
Perhaps she should get an accountant up in the champagne room and ask him these questions.
Perhaps she should get an accountant up in the champagne room and ask him these questions.
Posted on 1/11/10 at 1:34 pm to reluctantBR
There is a safe-harbor rule...I think if you deposit 100% of prior years tax liability or 90% of current years, you are safe from being penalized.
Pic or GTFO.
Pic or GTFO.
Posted on 1/11/10 at 1:40 pm to reluctantBR
Simply stated, an individual's estimated quarterly income tax payments are based on his or her previous year's income tax liability or current year's projected income tax liability. If an individual received a Form 1099 for earnings during the taxable year, he or she will likely owe both regular income tax and self-employment tax.
Posted on 1/11/10 at 1:40 pm to Martavius
she did not do this job in 2009, so she does not have any prior year tax liability. when she does her quarterly estimates does that cover her soc sec and medicare.
Posted on 1/11/10 at 1:49 pm to reluctantBR
If she had -zero- prior year tax liability, then she might not be required to make estimated quarterly payments. However, she will still owe taxes for the year on April 15th. Therefore, it might be advisable to make estimated quarterly payments in advance.
If an individual who is required to make estimated quarterly payments correctly calculates the amount due, then the payment would cover social security and medicare. A self-employed individual owes both regular income tax and self-employment tax.
If an individual who is required to make estimated quarterly payments correctly calculates the amount due, then the payment would cover social security and medicare. A self-employed individual owes both regular income tax and self-employment tax.
Posted on 1/11/10 at 1:51 pm to reluctantBR
If she is just starting the job in 2010, she can get a copy of Form 1040-ES from the IRS website. Try to estimate what she will make in 2010, divide by 4 and send in quarterly. The first installment is due April 15th, so she should be able to figure out about how much she made in the first couple of months and project that out over the entire year.
When filing her taxes next spring she will do a full 1040 that includes a Schedule SE. This figures self employment tax including SS and Medicare, which go towards tax liability.
The quarterly payments are treated just like withholdings on a W-2 on the annual tax return, so yes the quarterly payments do cover SS and Medicare.
When filing her taxes next spring she will do a full 1040 that includes a Schedule SE. This figures self employment tax including SS and Medicare, which go towards tax liability.
The quarterly payments are treated just like withholdings on a W-2 on the annual tax return, so yes the quarterly payments do cover SS and Medicare.
Posted on 1/11/10 at 1:53 pm to reluctantBR
quote:I won't be able to answer your question until you post a photo of her.....
How is a stripper supposed to pay taxes, she is 1099
anyone can help?
ETA: Preferably a work picture.
This post was edited on 1/11/10 at 1:55 pm
Posted on 1/11/10 at 1:55 pm to LSURussian
Cash business. Sure they don't report much of that income.
Remember reading an article that waitresses at Ruth's Chris were making about 80k a year. Sure a lot of that's on credit cards.
Remember reading an article that waitresses at Ruth's Chris were making about 80k a year. Sure a lot of that's on credit cards.
Posted on 1/11/10 at 1:55 pm to TigerfFaithful
so she is just paying her taxes throughout the year as apposed to all of it at the end. why is the self employment tax so high. i estimated her to put aside 30% of what she made, but the self employment tax is 15.3% on top of her regular tax rate.
Posted on 1/11/10 at 1:57 pm to reluctantBR
quote:Because the government says so. A self-employed person has to pay both the employee and employer share of FICA. The only edge is a self-employed person gets a 50% deduction from taxable income for income tax for the self-employment tax amount paid.
why is the self employment tax so high.
Posted on 1/11/10 at 1:58 pm to PJinAtl
She should reserve roughly about 35% (15 fed, 15 self employment, 5 LA) for taxes out of all the money she makes, nightly. She needs to keep records for the money she makes (and/or the money she claims to the business.) She doesn't have to make quarterly estimates, but the IRS will charge her interest (called an underpayment penalty) based on the amount underpaid for each quarter. Right now the interest is approx 6%. State will charge the same penalty with a higher rate. If she had no income tax (or very low) in 2009, she may not have to worry about the payments for 2010 due to the above mentioned safe harbor rule. Don't fall too far behind on these because it is very hard for people to play catch up if they are not saving.
Posted on 1/11/10 at 1:59 pm to reluctantBR
Usually with payroll taxes, you pay half and your employer pays half. If you're self employed, you pay all of it.
Posted on 1/11/10 at 2:01 pm to Martavius
what the frick is the question? How does she pay taxes? She adds up all fo the 1099s and puts that as other income not subject to self-employment taxes. Does she get a W-2 from the strip club? Why the hell do you have a stripper as a client. Are you really asking about your wife instead of your client? Since it is a 1099, there are no withholdings. Make sure she keeps a portion of her 1099 to cover the taxes.
Posted on 1/11/10 at 2:05 pm to AuburnCPA
she does not get a w-2 from the strip club, why does she not have to pay self employment taxes
Posted on 1/11/10 at 2:06 pm to AuburnCPA
also should i have her pay them quarterly.
Posted on 1/11/10 at 2:07 pm to AuburnCPA
That would not be "other income"...it would be Schedule C, and subject to SE tax.
Posted on 1/11/10 at 2:07 pm to reluctantBR
is she self-employed, or employed by the strip club? If you were to list her occupation, is it self-employed or stripper?
and why is she getting a 1099? Is her employer doing this to avoid paying their portion of payroll taxes. Sounds like payroll tax fraud to me.
and why is she getting a 1099? Is her employer doing this to avoid paying their portion of payroll taxes. Sounds like payroll tax fraud to me.
This post was edited on 1/11/10 at 2:08 pm
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