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I have a full-time job were I'm registered...

Resolved • Response time 4 minutes

3 May 2013

I have a full-time job were I'm registered with my ssn and receive a W-2 for the government to file my taxes. I have now been offered the opportunity to work as a freelancer for Marketing/ Webdesign on evenings/ weekends. Do I have to get a registration anywhere? I'm expecting to make 350 USD per week. When I write invoices how much tax do I have to ad? How do I file my taxes at the beginning of next year? I'm a European Citizen with a Green Card. Do I need to inform my employer about my side job when I only work in my spare time and it's not a competitor of any kind? Thanks!
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3 May 2013

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Tax Professional's response
3 May 2013
Robin D.
Robin D.
Hello and thank you for using Just Answer, You are not required to register your self employment but you will need to estimate what your taxes will be for the coming year so you can look to making Estimated Tax payments. As a self-employed individual, generally you are required to file an annual return and pay estimated tax quarterly. Self-employed individuals generally must pay self-employment tax (SE tax) as well as income tax. SE tax is a Social Security and Medicare tax primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners. In general, anytime the wording "self-employment tax" is used, it only refers to Social Security and Medicare taxes and not any other tax (like income tax). Estimated tax is the method used to pay Social Security and Medicare taxes and income tax, because you do not have an employer withholding these taxes for you. Form 1040-ES, Estimated Tax for Individuals (PDF), is used to figure these taxes. Form 1040-ES contains a worksheet that is similar to Form 1040. You will be reporting this income using Schedule C which is attached to your 1040 return. I would not think you would need to advise your employer but that is more of an employment question then a tax question. I sincerely XXXX XXXX information is helpful to you but please let me know if you need more information.
3 May 2013
Customer reply
3 May 2013
Thanks, I'm still a little confused. As I indicated I live in the state of Florida, as far a I know I don't need to pay income tax. If so how much in percent do I need to add to my invoice? Also, I pay social security and medicare tax in my full-time job, do I need to pay those taxes for my side job as well, if so how much in % would it be. Please tell me if write an invoice how much tax in % do I ad? I don't know how much I'm expected to owe, what is a good figure? Thanks!
3 May 2013
Tax Professional's response
3 May 2013
Robin D.
Robin D.
You need to pay federal income tax not state that is correct as Florida does not have income tax but the federal is the info I sent you. Yes, you still are required to pay SS and Medicare (that is the self employment tax as I explained). Florida does not expect sales tax on the service you supply. That would be the only tax that would go on an invoice. If your company provided a taxable service, then the company MUST file a Form DR-1 to register with the Florida Department of Revenue to collect and remit sales tax. Your income from this will be taxed after you subtract your expenses and then add the remaining (Net Income) to your wage income. There is no way to know what your income tax would be. The Self Employment tax too is after your expenses and the rate is 15.3%
3 May 2013
Tax Professional's response
3 May 2013
Robin D.
Robin D.
XXXXXXXXXX-XXXXXXXX- Last Viewed on 5/3/2013 at 10:51 AM Did you need any other information about the self employment tax? Your positive rating is always thanks enough. If you could also participate in the very short survey that Just Answer will send you by e-mail I would appreciate that very much. I really enjoyed working with you – please feel free to request me again when you come back to ask another question.
3 May 2013
Customer reply
3 May 2013
So that means for me: - I don't write any taxes on my invoices - I pay estimated taxes quarterly, do I start 3 month after I started my freelance job or right away? - Do the form 1040-ES do I need to ONLY fill in the information about my self-employed income or everything (my full-time job, my husbands job, etc). in order to estimate the taxes? - Does form 1040 cover SE-tax + income tax estimation? Thanks! That should clarify my questions.
3 May 2013
Tax Professional's response
3 May 2013
Robin D.
Robin D.
I don't write any taxes on my invoices Correct I pay estimated taxes quarterly, do I start 3 month after I started my freelance job or right away? Start now. The first payment for you will be June. Do the form 1040-ES do I need to ONLY fill in the information about my self-employed income or everything (my full-time job, my husbands job, etc). in order to estimate the taxes? Just the self employment income you are going to be earning Does form 1040 cover SE-tax + income tax estimation? The 1040 form has a line to enter the Estimated Tax payments you will make and the Schedule C is attached to the 1040 which shows your income. Your positive rating is always thanks enough and lets Pearl know that you were assisted.
3 May 2013
Tax Professional's response
3 May 2013
Robin D.
Robin D.
Let me know if you could not view the answers to your follow up when you viewed Customer Last Viewed on 5/3/2013 at 11:52 AM
Robin D.
Robin D.
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15years with H & R Block. Divisional leader, Instructor
3 May 2013
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