 I am working in Bangalore?There is PT deduction from my salary? |
Amount of 200Rs got deducted from my salary every month on the name of PT. I came here from Punjab for job.Will anyone explain me what is this PT. and how to save this deduction.
Thanx in ... |
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 My mother filed for me on her taxes without my permission? |
I am 25 with a baby and a full-time student. On my FAFSA, I stated that no one can claim me as dependent.
I am also concerned that this will affect my financial aid because my mother is a ... |
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 Has anyone actually received there stimulas check yet from the goverment? |
| I'm wondering if anyone has received there stimulas check yet from the goverment? I read online that if you had direct deposit they where to start going out on tuesday I think it was. From what ... |
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 What happens if i go exempt for 6 months and the other 6 i go 0 dependents and single? |
| okay here is the problem this 2006 tax year i put in alot of overtime hours and my check is about 2100.00 every 2 weeks but the problem is that they tax me with like about 600 to 700 hundred every ... |
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 How to apply for pan card? |
I am student of M.B.A. and i have to obtain a pan card but i am not earning any thing now?
how to apply for pan card?
... |
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 Do you have to pay taxes on wholesale items that you sell on ebay.? |
| I want to purchase wholesale items as a LLC but I wonder if I can take those products and sell them on ebay instead of my online store?... |
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| I work as a walk-on coach at a high school and a junior high school. I get paid through the district so taxes are automatically taken out of my paychecks. Should I file? If so, how do I do it? I'... |
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 I have a potentially big tax problem on my hands... Can someone give me some good advice please? |
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 Economic Stimulus Payment?? When? |
The website/hotline states that it is scheduled to be mailed 6/6 however the notice that came in the mail earlier this week said to expect it by 6/6.
Just curious, which one should we go by??
... |
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 Can my husband who left us in May 07 claim my son on his taxes just because he now pays child support? |
| He just started paying partial child support in Oct. leaving me high and dry from May until October... he says his lawyer says he has the right to claim my son. Does he? or can I go ahead and efile ... |
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 Is the Rumor true about H&R Block? If you used H&R Block, your rebate will be mailed no matter what.? |
| I used direct deposit with H&R Block and I received nothing on the 2nd cause my ss ends 13. I heard if you used them a paper check will be mailed no matter what. I checked IRS site and called the ... |
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 If your parents pay for a part of your College tuition, can they deduct that from their taxes? |
| I'm starting in fall and even though i 've received scholarships and grants there is still money that needs to be paid in either the form of a loan or out of pocket. My parents are willing ... |
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Brandon | Follow up question: If I Incorporate, do I pay taxes twice? |
So i'm planning on incorporating and more and more I realize I need to get in contact with an accountant, but my question is simple I think.
If I incorporate (as the company's only employee) then I pay myself a salary from the company pocket. With that it seems like I would have to pay taxes twice, once for the income of the company then once again on my personal W-2 income from the company. Is this correct?
Basically I work for a company (W-2) right now but my boss wants me to incorporate because i'm relocating. It's cheaper and easier for him to pay me corp to corp instead of W-2 (state forms and all). So I get paid from him monthly, then I would cut myself a salary out of that but pay taxes on both? |
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Clark Kent
 |
What you need to do to avoid paying both corporate and individual tax is to elect to be taxed as an S-Corporation. First you form your corporation which will be assumed to be a C-Corporation, but you can file a request to be taxed as an S-Corporation. If you are the only stockholder and the only employee, then it will be approved if you send it promptly after you incorporate.
As an S-Corporation all profits are taxed to the owners, and the corporation is not taxed. You must pay yourself a 'reasonable' salary if the corporation has any profit. That means the corporation must match your social security and medicare, so you have 7.65% withheld from you pay and the corporation pays another 7.65% making your cost a total of 15.3%.
Any profits over and above the 'reasonable' salary escape the SS tax.
So if your 'reasonable' salary is 50% of the profits, you only pay the 15.3% on half the income which brings it back down to 7.65%.
An advantage to the S Corp is that you can deduct all ordinary and necessary expenses without any reduction like you must take for employee business expense. A disadvantage is that you must use actual expenses for car expense instead of the standard mileage allowance.
If you fail to file to be taxed as an S corp, then you will pay both corporate tax and individual tax on any profits that you don't pay yourself as salary. If you pay dividends, you cannot deduct them from the corp tax, but must include them as income; i.e. double taxation. |
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Judy1
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If you are relocating and will now be working for him as an independent contractor, so you control when and where you work, he could pay you and just issue a 1099 rather than a W-2. Agreed, with a corporation he wouldn't have to issue the 1099 either, but being incorporated is likely to cause you extra tax and tax prep expense since the corporation would have to file its own return, in addition to your personal filing. Your salary would be income to you but an expense to your corporation, so no you wouldn't get taxed twice on that part.
Even an S-corp has to file its own return, although all the income just passes through to the owners personal return. |
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bud68
 |
Your "corporation" pays corporate income taxes. You pay personal income tax. Your boss's idea sounds screwy. |
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Dan B
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This is how I think it'll work:
Let's say your boss pays your corporation $100,000.
Your corporation pays you a salary of $75,000.
Your corporation can deduct the $75,000 (employee expense) and pay taxes on the $25,000.
You pay taxes on the $75,000 (personal income tax). |
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Johnson M
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You are two separate entities, so no, you pay taxes once and the corporation pays taxes once. |
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Mike
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There is a lot of misinformation in the responses. If you want to, you can contact me @ mikeh@skinnergtameron.com and I can help you out. |
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PureOrLady
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you pay taxes on your w-2 and your gross wages are a deduction from net business income.
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Rachel D
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Your going to file a Schedule C, at tax time if you incorporate as an S corporation, which is the most common. In this schedule, you can claim your income and make your deductions all on one form, no need for separate filing. You can also probably do it yourself with an online tax service like H&R Block, it's actually quite simple once you know which form to use. Hope this helps |
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