Posted by anon on 7/13/05 4:06pm
Msg #51744

Witholding Tax

Can someone please let me know what Tax Forms I should use for witholding state and federal taxes from the companies requiring W-9 Forms??

I'm in NY.

Thanks in advance for any and all help!

Reply by CarolynCO on 7/13/05 4:09pm
Msg #51746

I don't generally reply to anonymous posters, but whether a company requires a W-9 or not, you are still an independent contractor and you are responsible for paying taxes on *all* income your income.

The cost of a CPA or other tax accountant is well worth the price and headache.

Reply by Roger/OH on 7/13/05 4:13pm
Msg #51750

As an independent contractor, you're responsible for your own taxes, as the companies will not withhold them. They will send you a Form 1099 at the end of the year with the amount they paid you, and you'll file taxes based on that amount. You may file a Schedule C for your business, and the IRS and state may require you to pay your estimated taxes quarterly.
Check with your tax advisor or CPA and be sure you have everything set up right; there are a lot of tax advantages to having your own business.

Reply by oldhippie_IL on 7/13/05 4:23pm
Msg #51760

Which is? This is my first year, and everyone has me scared that I will be paying at the end of the year.

Reply by Jon on 7/13/05 4:57pm
Msg #51779

If you pay nothing into the system, there will be nothing to get a refund of. If you make money, and don't pay toward your taxes through out the year, you will most likely owe.

Reply by NY_TaxLady on 7/13/05 5:50pm
Msg #51787

Not to advertise but to help other notaries with their taxes. [e-mail address]
You all did a great job answering the question.

Reply by Stephanie_CA on 7/13/05 6:11pm
Msg #51795

Re: Witholding Tax....unless you have many

business expenses that will/may offset the amount you owe.

Reply by sue on 7/13/05 8:31pm
Msg #51843

Why be scared? Every year my CPA ups my quarterly estimates and every year I still owe. I'm happy. That means I'm making more and more $$$$$$$ every year !!!

Reply by patti-ca on 7/13/05 5:55pm
Msg #51789

But if you do not provide a W9, the companies that you do business with, may withhold 20% of what you earn for federal back-up withholding.

Reply by NY_TaxLady on 7/13/05 6:29pm
Msg #51804

Never had any co. withold any amount.

Reply by patti-ca on 7/13/05 6:37pm
Msg #51807

If you review the IRS website, they recommend it if you don't have a W9 on file as the payor can end up responsible...I'm not on the site now...so I am going completly off memory...so don't shoot me if I am off on my interpretation.

Reply by anon on 7/13/05 11:32pm
Msg #51900

WHAT FORMS DO I USE????? n/m

Reply by BrendaTX on 7/13/05 11:50pm
Msg #51903

We heard you the first time...

I *think* the way most of us do our taxes is to do a 1040 and use a Sch C. However, you sound like you want the companies to withhold taxes for you. I don't think that's going to happen.

Reply by SamIam_CA on 7/13/05 11:52pm
Msg #51905

Re: We heard you the first time...

HEY! You out-posted me while I was looking that up. Shouldn't you be asleep by now and plotting tomorrow's marketing bonanza?

Reply by SamIam_CA on 7/13/05 11:51pm
Msg #51904

Re: WHAT FORMS DO I USE????? n/m

Self-Employment Tax see IRS Publication 17 & Schedule C

http://www.irs.gov/

Reply by Roger/OH on 7/13/05 11:55pm
Msg #51906

Re: WHAT FORMS DO I USE????? n/m

Again, the ONLY form you provide to the signing companies is a W-9 certifying your tax ID number (highly recommend getting an EIN from the IRS). There will not be ANY withholding from the companies; zero, zilch, nada - it's all YOUR responsibility because you are an independent contractor with each company, NOT an employee.

Sounds like you really need to talk with a tax person or CPA to ensure your business will be filing correctly at year end. There are a LOT of business related expenses, etc you have to
consider for inclusion, and you'll probably want to consider paying your estimated taxes
quarterly so you won't owe a ton at end of year.

Reply by anon on 7/14/05 3:18am
Msg #51921

Most of you are not did not read my question correctly

Thank you SamIam.

I AM ONLY INTERESTED IN HOW I ***MYSELF*** AM SUPPOSE TO WITHOLD TAX FOR THE INCOME I RECEIVE FROM COMPANIES THAT HAVE MY W-9.

Reply by thnotary_NY on 7/14/05 7:31am
Msg #51932

Re: Most of you are not did not read my question correctly

First of all, get off this anon thing and get yourself a name we can identify you with. Yes yes we know your from NY. Second, keep track of every expense and income from signings. You may not get a 1099 from every ss you do business with because you may not have earned enough for them to send you one, but you've got to report the amount regardless. Third, don't worry about tax until Jan.(if this is your first year, you probably won't make that much to make a big difference anyway). Fourth, go back to the begining and read the past postings, if you still have questions........come back.

Reply by Roger/OH on 7/14/05 7:38am
Msg #51934

Re: Most of you are not did not read my question correctly

You can put some money aside as it comes in to an interest bearing account and pay quarterly to IRS/state/city or just pay at the end of the year. If you do the latter, just be sure you have put enough back to meet your tax bill. Like I said, best to consult a tax person. But basically, you withhold on your own.

Reply by CarolynCO on 7/14/05 8:41am
Msg #51951

Re: We have read and DO understand your question

*Most* of us *did* read and understand your question correctly -- that is why you've been advised to seek the advice of a CPA or other accountant/tax adviser (advisor?) !!!