What tax documents do I need checklist?
What tax documents do I need checklist?
Sources of Income
- Employed. Forms W-2.
- Unemployed. Unemployment (1099-G)
- Self-Employed. Forms 1099, Schedules K-1, income records to verify amounts not reported on 1099-MISC or new 1099-NEC.
- Rental Income. Records of income and expenses.
- Retirement Income.
- Savings & Investments or Dividends.
- Other Income & Losses.
Do I need receipts for self employment taxes?
Yes. In fact you must keep your own records of your income and expenses. First of all, If you buy the Desktop CD or Download Software any version will handle it but you will get more help in Home & Business.
What is the self employment tax rate for 2016?
12.40
Watch the Taxes Increase
| Self Employment Tax Rates: 1951-2021 | ||
|---|---|---|
| Year | Social Security (SS) Tax (%) | Max Earnings Subject to SS Self-Employment Tax |
| 2015 | 12.40 | $118,500 |
| 2016 | 12.40 | $118,500 |
| 2017 | 12.40 | $127,200 |
How do I lower my self-employment tax?
The only guaranteed way to lower your self-employment tax is to increase your business-related expenses. This will reduce your net income and correspondingly reduce your self-employment tax. Regular deductions such as the standard deduction or itemized deductions won’t reduce your self-employment tax.
Do you need bank statements to file taxes?
You don’t have to submit your bank statements with your tax return, but you should keep them for your records.
What can I claim on my taxes?
Here are some tax deductions that you shouldn’t overlook.
- Sales taxes. You have the option of deducting sales taxes or state income taxes off your federal income tax.
- Health insurance premiums.
- Tax savings for teacher.
- Charitable gifts.
- Paying the babysitter.
- Lifetime learning.
- Unusual business expenses.
- Looking for work.
How does the standard deduction work for self-employed?
Yes, the self-employed can claim the standard deduction on Form 1040, Line 40. If you opt to itemize your deductions, you will need to list the itemized expenses on Schedule A of Form 1040. Add up the total of the itemized expenses, subtract the total from your income. This figure is your taxable income.
What is the self-employment tax deduction for 2016?
Self-Employment Tax Deduction. The self-employment tax refers to the employer portion of Medicare and Social Security taxes that self-employed people must pay. Everyone who works must pay these taxes, which for 2016 and 2017 are 7.65% for employees and 15.30% for the self-employed. Here’s how the rates break down:
Can a self-employed person deduct expenses?
But because they don’t have taxes withheld from their paychecks like traditional workers, they can use deductions to cover their expenses and lower their tax burden. But when it comes to self-employed deductions, the process certainly isn’t one-size-fits-all.
What are the 1515 tax deductions and benefits for the self employed?
15 Tax Deductions and Benefits for the Self-Employed. 1 1. Self-Employment Tax. The self-employment tax refers to the Medicare and Social Security taxes that self-employed people must pay. This includes 2 2. Home Office. 3 3. Internet and Phone Bills. 4 4. Health Insurance Premiums. 5 5. Meals.
Do you need a tax cheat sheet if you are self-employed?
It is not tax, legal, or financial advice. Always consult your tax professional before filing your taxes. Now, my self-employed friends, your cheat sheet (and don’t forget to download the PDF version that has space for you to match your expenses with your deductions): Everything you spend on promoting and marketing your business.
