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But the husband will be paying taxes

Posted By: Patti on 2008-02-27
In Reply to: No, that is not the sticking point- - My other 2

If he becomes the IC and they earn 24,000 in a year on IC income and he pays her $10,800 -- she will still pay taxes on that but it will just not decrease her social security of whatever it is. And she will have to pay the 15.75 SS on that.  He will then pay income tax and the social security on the 13,2000 that is left.  Even though she does all the work.  Someone will still pay on the remaining amount.  So will they be ahead -- NO.  She probaby should have just become an IC out and out and wait to collect her retirement or SS.  But there is a difference between SS and taxes.   So when they combine their income they will still be paying taxes on that total amount, and if he earns anything it will be higher than just that. 

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    Even after paying taxes, you end up with more


    As an IC when paying taxes, are SS and fed taxes sent SM
    to the same place?
    If you do your taxes properly, you certainly SHOULD NOT end up paying...
    40%.  Obviously if you have no deductions other than the standard, you will pay more, but even with only the standard deduction, you shouldn't be paying 40%.
    As far as paying taxes, if you hire as IC..
    you don't have to pay any taxes for your friend. At the end of the year, or actually the beginning of next year, you will have to fill out a 1099 and send it to her and file a 1099 summary report with the IRS and then you report what you paid her on your taxes in April. You can purchase the 1099 forms at Staples or any other supply store. You might speak with your accountant (if you have one) and see what he says but that's all I had to do.

    Also, if you are setting your own rates, I would go to the 65-character line for all clients if I was you. It's wise to make up a contract for each client and have them sign that as well. You can probably find sample contracts on the web.

    Good luck! If you have someone willing to work for you, farm out some of the work that you can't handle and see where the chips fall and then you can decide if you want to stay with the national, etc. Word of mouth spreads fast in this biz so you might end up with more clients sooner than you think and then you can call your own shots. :)
    I agree too. WE are paying SS taxes--sm
    which is SUPPOSED to be an account to help people after they retire so they can continue to live a reasonable life. It is NOT a handout, and I think the poster who suggested such was thinking of SS disability, which is not the subject of the conversation at hand. Some are just LOOKING for an excuse to judge someone else.
    you need to be paying quarterly estimated taxes(nm)
    To clarify: 6-8 CPL with NO BENIES, PAYING 40% in taxes IS a ripoff
    Line rate with benefits and without is a BIG difference.

    IC's get robbed. 7.5 cpl with no benefits is rediculous.

    If you're making 15 CPL as an IC you're only making/bringing home the equivalent of a 7.5 CPL benefited MT.

    So I can see why you would gripe.

    Now with full benefits and taxes paid and insurance and 401K and PTO and holidays, etc...7.5 CPL is TOTALLY acceptable.
    I'm with you on the illegals, but paying taxes is not an insurance policy.
    START paying property taxes?!?!? Honey I HAVE BEEN all since I got this place!!!
    "If you want to be treated like everyone else, then pay taxes like everyone else"

    Well thanks for ASSUMING that you knew that I didn't pay taxes. Every single person in this place that I live (300+) pay taxes. We don't own land so we don't pay taxes on that. We pay it on the home. Then our rent payments for our itty bitty pieces of land helps pay the propery taxes for the site.

    In Michigan they don't? Seems hard to believe they would do that. If they don't pay it on the home then I would think they would paying it on the land or if they are in a park I would think that the park OWNER would pay the property takes for the large site.
    OK. Now if your husband is bringing you down by his mental illness and not paying rent
    (is husband able to work? how deep is this mental illness? did he have money to pay rent and spent it elsewhere?) then maybe you should think about leaving him rather than placing your kids in any kind of foster care. That has to be traumatic but then so does living on the street. Speaking of placing your children in foster care while you get yourself OK in the head, what is your problem at this point. You see, if there is a lot of arguing and a dysfunctional family living on the streets, then foster care to permanent placement may be better for them. I just don't quite understand how you got into this mess and if these are mental health issues on both your part and your husband's I would look into placing the children. BTW, how old are they?

    So all things considered if you don't have any issues other than depression because of a lack of a place to live and your husband's mental health, I would go to a family member or church and BEG for help sorting your life out. If there is more than that going on, including maybe substance abuse along with permanent mental health issues that will keep you from caring for your children, yes I would seek placement for them. And I would seek PERMANENT placement rather than foster care which I would think would be more traumatic for your children.
    Husband claiming less for taxes.

    I heard this might not be a good idea and that you can get penalized by the IRS anyway.  Any ideas what works best for any of you?  Should I have my husband claim less to make up for my taxes or, should I pay quarterly?  If this helps, I do have 2 kids.  

    Thanks in advance!!

    I don't pay quarterly taxes. My husband
    as 0, so they take out the maximum possible, PLUS he has them take out an extra $100 out of every check to help cover taxes on my income.  Usually when we do taxes we owe an additional $1000 to $1200 after what he has taken out of his check, my business expenses, and our itemized deductions.  We just write a check and send it in with our taxes.
    Husband claiming less for taxes.
    Thanks!  Do you have any kids?  I am just wondering if that is included as well, since you tend to get money back for kids.  I am hoping my two kids well help put us even, instead of paying in..
    Husband claiming less for taxes.
    Thanks everyone for your help. I think I will have my husband drop to a 2, then I will have to ajust accordingly. 2006 will be my first full year doing taxes as an IC. By saying exemption 2 at a single rate, you mean not married right? I just want to make sure I am understanding everyone (taxes are not my thing)!!!
    Well, my husband and I paid 58% last year in taxes. I swear! sm
    I won't tell you our gross, but it's above average, we both work 70+ hours a week and we are struggling to pay our bills - parents of 3 young children.

    I am scared to death of Democrats being back in office. GW at least wants tax breaks for families like ours. If the Dems are in office I'm afraid we'll be taxed more to help pay for people like my niece who had babies beginning at age 13 and has never had a job in her life. How can this NOT outrage anyone - yet I know there are people out there who tell me to get over it, it's life, those other people are 'entitled' to our money. It's absolutely vile and disgusting.
    Thwap the husband on the head, buy the keyboard, save the receipt, deduct it from your taxes.

    I wouldn't even ask my husband for something like that, any more than he asks me if he can fill up his car with gas so he can get to work! Sheesh! What a prince of a guy you've got there....  You get your keyboard, girl! 

    You have your W2 showing very clearly those taxes were paid. MQ is responsible for those taxes
    because you were a statutory employee. That is the responsibility of the employer to pay those just as though you were an employee.
    DH is dear husband or any number of colorful adjectives preceding husband. (no message)
    What are you paying your MTs? If you're only paying 7 or 8 cpl

    and expecting extremely experienced MTs, forget it. You're not going to get it.  If, however, you're willing to pay 9 or more cpl then you will find what you're looking for. There ARE experienced MTs out there who will work their fingers to the bone IF they are compensated well and treated with respect.

    ATT- I was paying $320 for 7000 minutes, I am now paying $175 for 5000 minutes in CA. nm
    I totally understand but if your husband is like my husband... sm

    When it comes to something like that, that I usually take care of but for whatever reason I can't, I will tell my husband exactly what to do, but when he comes back - to use your case as a "for instance" - I will ask him, "Did the doctor look at his foot?" 

    Him: "No."

    Me: "Did you ask the doctor to look at his foot?"

    Him: "No."

    Me:  "I told you to have the doctor look at his foot!"

    Him: (shrug)

    etc., etc., etc.

    Your husband may not be like that - I sure hope he isn't. And yes, they should have checked his vitals and checked his foot without being asked. But sometimes you have to be assertive with people. And while my husband attained the rank of major in the Air Force and had no trouble ordering people around, there are times when he should be assertive but isn't. And he is not intimidated by doctors - he started his AF career as an x-ray tech (that's how we met). I dunno....(Rad MT wanders off, mumbling....)

    THANK YOU! That is my point. She still pays taxes, her DH still pays taxes...

    so who exactly is getting cheated?  And just who are you talking about when you talk about whether it is "fair" or not.  I don't give a crap how much taxes my neighbor pays.  It's none of my business.  And if I found out they were paying less in taxes than me, I would ask them how they heck are they doing it so I can do it too!

    I just want ask, is it necessary to get personal and insult?  You disagree with me, fine.  But I've been called a liar, a cheat, a no-ingetrity thief, my intelligence has been insulted, and I have had my parenting skills questioned.  That is a little over the top.  If you cannot debate an issue without resulting to personal attacks, then YOU are the stunted one!

    It is a very good thing that some of you work at home, ALONE!  You are sorely lacking in people skills and diplomacy.  Let me guess, when you worked in the office you were one of those girls who didn't like to share her desk, griped if someone dropped a crumb on your desk, and kept track of everyone's breaks, lunches, and line counts just so you could tattle to the supervisor!  I've worked women like you, it was like working with kindergarteners.  That's why I came home to work.  Do us all a favor, looking in the mirror, count your wrinkles, and realize that this isn't high school anymore!

    Why would they be paying for
    the loss of lines when the lawsuit is not settled. Plus, I don't think the small amounts will be sufficient to cover the loss of lines.
    Duh - I'm paying $2.79 for gas and
    my heating and electric bills have NOT gone up in 2 years and my rent hasn't increased $500 in 4 years, in fact hasn't increased at ALL in 4 years, etc.

    You're one of THEM, arent' you? One who wants to complain but when someone says do something about you get all defensive. LOL

    Chatter away ... not interested. LOL
    If you are paying too much for gas
    Just copy and paste into your address..........this is really, really cute!


    That's the old way of paying....
    imo, not good pay unless a 30 minute tape can be done in 1 hour or less.. some of my 30 minute tapes take me 3-4 hours to do because of the dictator.. be careful
    Wow, I don't know anyone paying that much!

    Sometimes if I get too far behind paying
    my internet bill, my IP provider seems to start doing that as if to remind me I better catch up or they'll shut me down. It's irritating, but it does get the job done LOL
    I used to do that, but it was not paying off. SM
    I haven't had a report returned in years. Believe me, if I got caught with a mistake, I'd be doin' me some heavy proofing too.
    who is paying 11 cpl? - nm
    Are you paying me?
    Am I on your payroll?  Do you pay my mortgage?  Do you put food on my table?  No you don't. Therefore, don't worry your empty little head about how I spend my time.
    Huh? Can you tell us some more about paying
    less than 1000 in taxes a year and how that works?
    Not in Writing, but they are paying
    Spot checks show they are paying me for spaces and for headers.
    They probably aren't paying for it anyway---
    That's why they charge so much for dues, etc., so the "higher-ups" can attend all these wonderful conventions in expensive places. I dropped them years ago. They don't have a CLUE that we are all scratching just to survive-- not with their "Let them eat cake" mentality! I wish EVERYBODY would drop their memberships and then see how often these idiots go to Hawaii when they all have to get a REAL JOB.
    Paying for college for my son..

    My son is attending college and I have paid for 2 years through a junior college, but it is now time for him to move to a major university. Because of my salary of just over $40,000 a year, he has never qualified for any type of scholarship, only student loans (which I have paid back). Does anyone know of ANY scholarships, etc. that can be applied for? I know nothing at all about how the system works and feel I have failed in trying to help him (it's all I can do to hold down 2 jobs in order to make the $40,000). We even tried to have him set up on a student work program, but they said you could not do the student work program if you were getting student loans. It was like at every turn, there was something to disqualify him from getting assistance. He carries an 'average' grade point (more interested in social aspects, of course, than his studies). He has never had a counselor at the junior college that helped much. He is interested in sports administration, so the junior college counselor did not know what field to put him in, so she put him in liberal arts, and now we find he needs some other classes instead. I'm searching for any help with limited time to search. He tries, but he does not seem to get anywhere either.   ANYTHING ideas would be appreciated, and thanks in advance.

    re: paying your FICA,SS etc as SE
    I beg to differ with you!  Been with MQ for 17 years, they have always paid my federal & SS...they do not deduct any state taxes for SE's, and this is the only one I've ever had to pay.......never been audited about having to pay part of the above and have professional tax folks do mine, again, think you need to check your facts on this one.
    anything to keep from paying for a space
    That is ridiculous and has to do with money rather than the "correct way" to do things.
    I don't see them paying more than 15 an hour, and thats being
    Right now I average 20-25 an hour.  I'm barely making a living on that.  If they switched to hourly, production would fall dramatically, creating backlog and lost accounts because of late work.  Not a good idea. 
    I had a doc tell me the other day that they were paying a service 7 cpl...


    I agree . . . unless they are paying you
    Don't do it.
    Ask the docs what they are paying now and go from there. nm
    They are getting exactly what they're paying for.
    Is this what you make after paying everyone else? - sm
    If so that is fantastic! So much for working so little, how nice is that, granted the buck stops with you and you have to clean up any messes, etc. but for $78K a year I'd be quite happy too.
    Yes, if you think the companies are not just out for themselves and will try to get out of paying
    MTSO not paying...
    My heart truly goes out to you.  This is certainly no way to run a business!  Myself, I would probably have said something I shouldn't have and not had a job afterwards.  I do so hope it gets better for you.
    MTSO paying
    As MTSO, I have a hefty cash reserve/line of credit attached to my business bank account. My payroll is never late, even if clients are late paying me. If credit line is paid back under 30 days, it is pennies to use. That's just my cost of doing business to ensure my MTs are paid on time. Most MTSOs I know do the same. If this person is filing personal bankruptcy, she probably can't get any credit at all.... and MAY be a red flag as to how she runs her business as well. It looks like you will be at her mercy in the future. I'd say keep looking -- there is a better fit for you out there.
    in my opinion, what you are paying for gas alone--sm
    not to mention the daycare, would be enough to cover your purchasing your own insurance. PTO is not worth it if you keep running out of work and have to use that to cover it. .09 cpl is not much for a hospital. Personally, I would tell them if they did not send me home, they could kma and I would find another job at home. You would actually be saving money, in my opinion, to go home and work from home...no more daycare and no more gas. How about hubbie's insurance?? There are pitfalls with any job, including the one you already have. You can find one that suits you from home. they are out there, you just have to perservere. good luck to you!! Happy TG.
    Paying a subcontractor
    I am going to take in a subcontractor in an on-the-job training program. I want to know your input on paying them and paying yourself for the training. I an setting up an on-the-job training program. As an independent contractor, I receive 8 cents/line. I am going to have the subcontractor work with me in my office at my other work station, and I will teach her everything and QA all of her work closely until she is up to speed. I was thinking of paying her 6 cents/line and me 2 cents/line. What is your input on a suitable division of payments?
    Are there really ICs that would take an account paying....

    On the job board there have been several postings for IC positions paying 8 cents to as low as 6 cents.  Are there really MTs that accept this?   When they accept this, do they understand the expenses that they will incur?  Some say setting your own schedule is worth it but these positions are set schedules.  They say they are not but if the work is not done during that time, it goes to someone else.  I personally, would not take less than 10 and even that is low.

    paying to commute
    What is so funny about being paid to go back and forth to work? I worked for a company that paid for my gas mileage AND my car repairs. I drove a VW Rabbit that needed little to no repairs, but still....they paid my mileage and my gas. Leave off with the nastiness. She has a legitimate right to post what she wants as does everybody here.
    How about paying on-call!
    Speak for yourself.  Some people like a steady flow.  Not nothing one day, and then work 12 hours straight the next.  This is called on-call sweetie!!!!!!  Should be paid big bucks for that!!!!!