Self-Employment Tax Breakdown | How Self-Employed Taxes Work

[@makaylahanson1373]

"omg , that's a lot of money" is exactly my reaction when I saw mine this morning . that is exactly why I am here, watching this entire series, so the girls can know what they need to know to make & save the most money with our taxes.

[@KeeperTax]

Thanks for watching, Makayla!

[@kaylncannon4625]

56266

[@ItsKayleneJ]

First time 1099er... this was so helpful. 1. I was so lost about what I should be putting aside for taxes. 2. Once is used the tax calculator I was flabbergasted at the amount I would need to put aside monthly ... Took a huge chunk from my budget so now I need to learn what can be write offs. Thanks !

[@KeeperTax]

So glad it was helpful! Thank you for watching, Kaylene!

[@AmakaYere]

Where were you two years ago?! Everything was presented in such clear manner! Subscribed!

[@theanadevine]

This is the best tax information I’ve ever received, and a genuinely fantastic video. I’m like, spellbound.

[@KeeperTax]

Thanks for watching, Adriana!

[@tpeace1145]

Very helpful information and easy to comprehend!

[@dennygreenwood1431]

Great Info!! Thank you for the education.

[@dannyboimcnair5869]

Thanks sis that was helpful straight up!

[@evelynrodriguez2246]

Can you make a video of business write off? I need to know what that list is

[@KeeperTax]

Hi Evelyn! Check out this video for more information on business write-offs: kzbin.info/www/bejne/aF6naHWfd5qHrZo

[@yesquired9463]

What effect do personal expenses have on taxes? What is the significance and other examples of personal expenses?

[@KeeperTax]

Good question! Personal expenses are non-work-related expenses that you can itemize - or claim one by one - if you choose not to take the standard deduction. That's the significance of examples like charitable donations, medical expenses, and the like: if all of those add up to more than your standard deduction amount, then it makes sense for you to itemize. If they add up to less than your standard deduction amount, then you should just take the standard deduction. Keep in mind, the standard deduction amount is pretty high - close to $13,000 for single filers and $26,000 for married people filing jointly. So the standard deduction makes sense for most people. Regardless of whether take the standard deduction, though, you can always claim your business write-offs. Here's an article where you can learn more: www.keepertax.com/posts/can-i-take-the-standard-deduction-and-deduct-business-expenses

[@lupeleal3103]

Do we estimate taxes on Pension and Social Security too?

[@KeeperTax]

Hi Lupe! Thanks for your question. On the Keeper app, you can chat with a tax assistant who might be able to help with your specific situation. There’s a free trial, so you can try it out and see if it works for you. Get started with it here: keeper.tax/e/vcaZz1NJglb

[@keykey9804]

I been thinking if i should take a 1099 independent contractor job, but i need some answers and guidance. 1) You think is worth it to take a 1099 job and being a single tax filer person with no dependents OR is more convenient to work as a w2 employee and being a single tax filer person with no dependent s ? ? - 1b) and why ? ? 2) Around how much money(starting at around what number range) should i make a week and an hour to make it worth it to work as a 1099 worker and being a single tax filer person with no dependents ? ? . 3) If i work from home remotely(no travel out of my state) i should make sure that the company that hires me is based in my state ? ? so i donot get taxed in more than one state. - 3b) where is a completely remote based company's employee taxed ? ? , is the remote employee taxed based in the state that the employee lives ¿? ¿? .

[@KeeperTax]

Hi there! You've asked some great questions. It's impossible to give a clear answer without knowing everything about you - your financial situation, your professional background, your personal goals, and so on. Even if you provide a lot more detail, only you can say for sure! Here are a few things to think about, though. 1) Compared to W-2 workers, 1099 workers pay more FICA tax, get fewer benefits, and don't have tax withholding. That can make 1099 work harder, even if you're single with no dependents. (In fact, having a spouse with employer health insurance can make 1099 work more convenient - you can get on their health insurance.) That said, depending on the type of work you do, you might be able to command a higher hourly rate as a 1099 worker. You'll also have more flexible to decide how you work. Here's an article where you can learn more about the differences between 1099 and W-2 work and what they mean for your bottom line: www.keepertax.com/posts/1099-hourly-rate 2) For 1099 work, you'll want to set aside 20-30% of every paycheck for taxes. Knowing that, you can work backwards to figure out how much you need to make per week to pay your bills. 3) Remote workers get taxed in the states where they live. You wouldn't need to find an employer based in your state - these days, lots of companies are distributed, with employees all over! Best of luck deciding where to go from here. I'm sure you'll make the perfect decision for you.

[@abreafrierson7534]

So I also learned the difference between the 1099 and W-2.. with 1099 paying taxes or do we received any refund within their ?.. I'm new to the 1099 and freelancing contractors

[@KeeperTax]

Good question, Abrea! As a 1099 worker, you can still get a refund under some circumstances. For example, if you have other income where taxes are withheld from you, like you work 1099 on the side of a W-2 job. Another example is if you qualify for certain refundable tax credits - credits where, if the amount you qualify for is more than enough to cancel out your tax bill, you get whatever's left as a refund. One refundable credit is the Earned Income Credit, which you can read more about here: www.keepertax.com/posts/earned-income-tax-credit That said, not all 1099 workers will get refunds, especially if they freelance full time. To get a sense of whether you'll get a refund or have to pay taxes, you can try out free calculator: www.keepertax.com/1099-tax-calculator

[@LikeAStarrx33]

What happens when you WFH? A lot of people were hired in one state and then moved back home during COVID, do they get state taxed in both states? Also what if you're hired in one state but travel frequently (ex: hired in LA but travel often to NYC, MIA, NOLA) do you have to pay taxes for all of those states?

[@KeeperTax]

Great questions, Raven! State laws can get pretty messy, but generally speaking, you'd have to file tax returns in both states - the one you live in, and the one you got hired in. But the income would likely only get taxed in the state you're hired in. Some states do have reciprocity agreements, meaning they agree to let the state you LIVE in tax the income, rather than the state your employer is based in. If you travel frequently for a W-2 job, that shouldn't change things!

[@chessoptics]

Are you available for business calls? About the presented information?

[@Kdiamondgoddess]

Hi, thank you for this information on self employment taxes. I have a question, what if you didn't make more than 400 on your start up year of business do you still have to file a tax return?

[@KeeperTax]

Great question! You're right: if you earn less than $400 from your business (after subtracting your write-offs), then you don't need to file. Here's an article that goes into more detail on who's allowed to not file! www.keepertax.com/posts/how-much-money-do-you-have-to-make-to-file-taxes

[@ivankirkacayan8511]

I was hoping you can help me out. I sold tickets on Stub hub and since I exceeded the threshold of $600, I will be getting a 1099-K. Should I factor the 3 taxes you mentioned (Self employment tax, federal tax (to my tax bracket), and state tax) to prep how much I need to put aside or tax season? For example: Purchased tickets and profited $876.73.

[@KeeperTax]

Hi, Ivan! Yep, it's likely you'll have to account for self-employment tax, federal income tax and state income tax - unless you live in a state that doesn't collect income tax! You can use this calculator to get a sense of what your tax bill will look like: www.keepertax.com/1099-tax-calculator

[@abreafrierson7534]

I made over a thousand so I'm not even sure what that means does it mean owe get that money back ?

[@KeeperTax]

Hello! You can figure out how much you owe (and how you can reduce your taxable income with write-offs!) on the Keeper app. There, you’ll be able to chat with a tax assistant who can help. There’s a free trial, so you can try it out and see if it works for you. Get started with it here: keeper.tax/e/RKTCLKknmkb

[@kaleanorland646]

I’m so confused :/

[@KeeperTax]

Feel free to let us know if you have any questions, Kalea! This stuff can be pretty complicated. You're also welcome to shoot us an email at [e-mail] for your specific tax questions :)

[@abreafrierson7534]

Me to, I do Uber eats Delivery and Instacart..

[@ciaracorr6015]

🙌🙌🙌

[@kimmello2731]

I work for doordash. I made 3500 last year but I'm also on disability and widows benefits. Does this change anything

[@KeeperTax]

Hey, Kim! The disability and widows benefits shouldn't affect anything in your case. That's because Social Security is tax-free until you reach at least $25,000 in income from other sources. Same for widows benefits! Also, the income you're earning from Doordash shouldn't affect your ability to qualify for disability - your eligibility doesn't get affected until you're earning more than $1,000 / month. Long story short, you're safe!

[@kimmello2731]

@@KeeperTax that is wonderful thank you but as I have been informed by taking classes many years ago to do taxes I do believe I will have to pay my self-employment tax no matter what am I correct

[@KeeperTax]

@@kimmello2731 Hi, Kim! As long as you earned more than $400 from Doordash, you will have to file taxes on that income, yes.

[@madelinedoyle3370]

Love how everyone wants to save on taxes, but then it's bad for the people who make a lot of money .. just saying.

[@haidehbashash9152]

Very informational video. THANK YOU!