Health & Fitness
There Are Some Filing Differences This Year For Self Employed Individuals
Self employment earnings are subject to different rules under the government's reporting requirements. For the first time, credit card companies issued 1099s for 2011 earnings which must be reported.
Today's “Talking Taxes” video summary from Rich Goldberg deals with some of the different I.R.S. filing requirements for self employed individuals. The I.R.S. estimates some 300,000 new businesses will report for the first time for the tax year ending 2011. If you number yourself among those self employed, you must be prepared for the changes.
Starting in 2010, credit card companies must issue 1099s that report income to individuals which was previously not required. Therefore some self employed individuals who earn money from their outside work are more likely to be issued a 1099. People earning wages from a job and in addition work on the side, will be forced to report income from these (credit card) sources for the first time since the 1099s will be sent to the government.
Of course, self employed individuals should keep good records since they can list their business expenses and deduct them to off set this reported income. Goldberg advises it is a good practice to always keep adequate business records.
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Once again for the first time, these same self employed individuals may very well be required to pay estimated taxes. Those estimated taxes must be made on a quarterly basis. (This applies to both state and federal taxes.) The estimates must also include any self employment tax that is due. Self employment tax is the equivalent of social security tax.
Rich Goldberg has 39 years of experience specializing in business and individual income tax. He is a partner in the firm of Wippman, Guzman and Goldberg in Glenview, Il. Visit their Web site at http://www.wggltd.com
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Goldberg is a member of the Buffalo Grove Area Chamber of Commerce / Networkers group on LinkedIn. LinkedIn is the world's largest social network dedication for business. The Networkers group is open for all business people, students and job seekers interested in networking electronically on the Web. Find us by searching LinkedIn groups for the Buffalo Grove Area Chamber of Commerce / Networkers. Or http://www.linkedin.com/groups?about=&gid=1108167
