I have been offered a new position that will pay me a great wage but I will considered self employed. I understand that this means I will pay my own taxes including extra social security tax. I was wondering if anyone out there in mamasource is self employed and paying these taxes? is the tax form complicated and would this be a pain in the neck?
Definetely speak with a tax accountant. I LOVE mine.. she's knowledgable and very reasonable. She meets with me to try to get all my tax things in order a couple times a year and doesn't charge me to do that. It's worth it. You can write things off as well if you are self-employed. PM me if you'd like her info.
Lisa,
My husband has been self-employed for about 2 years now. It was a learning experience getting everything set up. And, it was helpful to go to an accountant for taxes. You are going to want to write off as much as you can and he should be able to help you with that. Also, if it ends up that you will be paying a large amount of taxes, he can set it up so that you can pay quarterly estimates, so that it is not a big hit just once a year.
If you do want to do your own taxes, it may be helpful to just go to an accountant the first year and separately do your taxes yourself with the software that same year to compare and learn. And then you should be able to do it yourself the following year.
Software like TurboTax does make it easy and walks you through everything, but I am always nervous I am missing something more that I could write off, so it was nice to just do the comparison.
Good luck and congratulations!
I agree with Shelly. You will most likely want to have an accountant the first year to assist you and educate you on what you can expense or not and other questions. That is the best way.
I am a daycare provider. We have someone else do our taxes but hold out a portion of the "income" incase we owe.
Hi Lisa,
It's not that bad. The best advice I can give is to make sure you have a tax software program. We use H & R Block's tax cut software and it walks you through everything.
Be sure to keep track of all of your business expenses/receipts because they can really add up in a year that you can write off being self employed.
I have my own home based business and it is well worth going to H&R block (premium office we go to the one on Cherry Hill) because they know every little thing you can write off. Depending on what type of business you are starting you will want to find out exactly what you need to keep track of and they should be able to help you with that too. If you would like the name of the lady we see there please let me know. Good Luck with your new job.
K.
