Go Back   British Expats / Living & Moving Abroad / USA

Reply
 
Thread Tools
Old Oct 3rd 2017, 4:56 pm   #1
BE Enthusiast
 
Joined: Aug 2012
Location: California
Posts: 306
LeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to all
Default Tax advice - freelance writer

Hi there. I’m a (sporadic) freelancer (writer) in CA. I don’t earn much money but seem to pay a lot (proportionately) in income tax. We file as “Married filing jointly” and I’d love some advice on tips to reduce my tax burden. Last year we filed our returns using turbo tax and I didn’t know that I should have been paying tax quarterly (I have no idea how much I might earn over the year as some months I work and others I don’t) so I had a penalty to pay.

I’ve just started working for a new start up who are paying me by check but haven’t asked me to fill in any tax forms. Do you know what forms I should fill out or how I can pay my quarterly income tax? Any advice would be greatly appreciated!!
Many thanks.
LeavingLondon is offline   Reply With Quote
Old Oct 3rd 2017, 6:26 pm   #2
Deep in the woods of CT
 
Nutmegger's Avatar
 
Joined: Feb 2010
Posts: 4,586
Nutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond repute
Default Re: Tax advice - freelance writer

If you are being treated as an independent contractor by your new employer and are going to receive a 1099 at year end (which seems apparent if they have not asked you to complete a W-4), you should give them a W-9 and then file estimateds yourself. For federal income tax, you file quarterly on Form 1040 ES. It appears that the CA form is 540 ES (perhaps a CA resident will confirm).

https://www.irs.gov/pub/irs-pdf/fw9.pdf

https://www.irs.gov/forms-pubs/form-...or-individuals

https://www.ftb.ca.gov/individuals/faq/ivr/208.shtml
__________________
Que sera, sera!
Nutmegger is offline   Reply With Quote
Old Oct 3rd 2017, 7:01 pm   #3
BE Enthusiast
 
Joined: Aug 2012
Location: California
Posts: 306
LeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to all
Default Re: Tax advice - freelance writer

Quote:
Originally Posted by Nutmegger View Post
If you are being treated as an independent contractor by your new employer and are going to receive a 1099 at year end (which seems apparent if they have not asked you to complete a W-4), you should give them a W-9 and then file estimateds yourself. For federal income tax, you file quarterly on Form 1040 ES. It appears that the CA form is 540 ES (perhaps a CA resident will confirm).

https://www.irs.gov/pub/irs-pdf/fw9.pdf

https://www.irs.gov/forms-pubs/form-...or-individuals

https://www.ftb.ca.gov/individuals/faq/ivr/208.shtml
Thank you. I just submitted a w-9 to them. I’ll look through those links you sent me.
LeavingLondon is offline   Reply With Quote
Old Oct 3rd 2017, 7:54 pm   #4
BE Enthusiast
 
Joined: Nov 2012
Posts: 573
Cook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond reputeCook_County has a reputation beyond repute
Default Re: Tax advice - freelance writer

Most Americans will deduct exclusive use of home office costs, depreciation on fixed asset (such as a computer) travel & possibly health insurance. Are you keeping track of all of your business expenses?
Cook_County is online now   Reply With Quote
Old Oct 3rd 2017, 8:10 pm   #5
BE Enthusiast
 
Joined: Aug 2012
Location: California
Posts: 306
LeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to all
Default Re: Tax advice - freelance writer

Quote:
Originally Posted by Cook_County View Post
Most Americans will deduct exclusive use of home office costs, depreciation on fixed asset (such as a computer) travel & possibly health insurance. Are you keeping track of all of your business expenses?
Yes I don’t have too many as I work from home although I need to buy a new Mac book.
LeavingLondon is offline   Reply With Quote
Old Oct 3rd 2017, 8:18 pm   #6
Deep in the woods of CT
 
Nutmegger's Avatar
 
Joined: Feb 2010
Posts: 4,586
Nutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond repute
Default Re: Tax advice - freelance writer

Quote:
Originally Posted by LeavingLondon View Post
Yes I don’t have too many as I work from home although I need to buy a new Mac book.
Do you dedicate a portion of your home to your work, if so you can deduct a commensurate percentage of your lighting and heating costs; do you use a dedicated phone line (f not, track business calls on your bill); do you buy paper for your printer or other office supplies; have you bought a filing cabinet; do you buy postage; give business gifts; take a colleague for a meal; tally mileage driving to a business meeting; purchase a new dictionary or subscribe to business-related publications; pay dues to a professional association -- there are a zillion things you can track and write off as a self-employed worker.
__________________
Que sera, sera!
Nutmegger is offline   Reply With Quote
Old Oct 3rd 2017, 8:26 pm   #7
BE Enthusiast
 
Joined: Aug 2012
Location: California
Posts: 306
LeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to allLeavingLondon is a name known to all
Default Re: Tax advice - freelance writer

Quote:
Originally Posted by Nutmegger View Post
Do you dedicate a portion of your home to your work, if so you can deduct a commensurate percentage of your lighting and heating costs; do you use a dedicated phone line (f not, track business calls on your bill); do you buy paper for your printer or other office supplies; have you bought a filing cabinet; do you buy postage; give business gifts; take a colleague for a meal; tally mileage driving to a business meeting; purchase a new dictionary or subscribe to business-related publications; pay dues to a professional association -- there are a zillion things you can track and write off as a self-employed worker.
Thank you. I’ll make sure I keep track of it and research what else I can expense.
LeavingLondon is offline   Reply With Quote
Old Oct 4th 2017, 11:54 pm   #8
kins Female
BE Forum Addict
 
kins's Avatar
 
Joined: Aug 2007
Location: Maine
Posts: 2,000
kins has a reputation beyond reputekins has a reputation beyond reputekins has a reputation beyond reputekins has a reputation beyond reputekins has a reputation beyond reputekins has a reputation beyond reputekins has a reputation beyond reputekins has a reputation beyond reputekins has a reputation beyond reputekins has a reputation beyond reputekins has a reputation beyond repute
Default Re: Tax advice - freelance writer

See if you have a local small business development center/council/organisation. If they're anything like the one near me they will spend an hour or two going through what you need to know about keeping accounts, paying taxes and answering your questions, at no cost to you.

The equivalent of these guys Maine Small Business Advising & Training | Maine SBDC
kins is offline   Reply With Quote
Old Oct 4th 2017, 11:55 pm   #9
kins Female
BE Forum Addict
 
kins's Avatar
 
Joined: Aug 2007
Location: Maine
Posts: 2,000
kins has a reputation beyond reputekins has a reputation beyond reputekins has a reputation beyond reputekins has a reputation beyond reputekins has a reputation beyond reputekins has a reputation beyond reputekins has a reputation beyond reputekins has a reputation beyond reputekins has a reputation beyond reputekins has a reputation beyond reputekins has a reputation beyond repute
Default Re: Tax advice - freelance writer

Quote:
Originally Posted by LeavingLondon View Post
Yes I don’t have too many as I work from home although I need to buy a new Mac book.
There are a couple of ways you can deduct the cost but a rough guide is that you can deduct 1/3 of the depreciation per year for 3 years.
kins is offline   Reply With Quote
Reply

Go Back   British Expats / Living & Moving Abroad / USA


Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off



All times are GMT. The time now is 8:42 am.


Powered by vBulletin: ©2000 - 2017, Jelsoft Enterprises Ltd.
© 1999-2010 BritishExpats.com