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Potential lower taxes for this sideline income?
Unless you make well into 6 digits you will see taxes stay the same or increase.
There are reasons that a body stays in motion
At the moment only demons come to mind
At the moment only demons come to mind
[www.businessinsider.com] [www.businessinsider.com]
Edited 1 time(s). Last edit at 12/18/2017 02:47PM by eyespy.
MSPA Gold Certified 2003
Edited 1 time(s). Last edit at 12/18/2017 02:47PM by eyespy.
Income is income. You are taxed according to your gross. You report your income and the withholdings on wages, and then you are subject to tax on what you earned. "Sideline" income would be taxed no differently, unless you claim it as business income earned by a business entity. In fact, you are *supposed* to report it as self-employment and pay Social Security on yourself, though people skip that a lot. Programs such as Intuit do this for you.
[ttlc.intuit.com]
[ttlc.intuit.com]
NPR has a good and current chart and according to that it looks like a positive change for sole proprietors.
Sole proprietors by definition receive wages on a W2. 1099 recipients would have to go through a bit of gymnastics to give themselves W2s.
Does anyone here report as a sole proprietor??
Does anyone here report as a sole proprietor??
Where do you get the idea a sole proprietor must receive wages on a W2? The below is excerpted from this: [smallbusiness.chron.com]
"A W-2 is a form that company employees receive in January. It shows the income they earned and the amount of taxes that were deducted. Employees need these forms to complete and process their annual income taxes. Sole proprietors of businesses are not eligible to receive salaries, as it is prohibited by law. These small business owners also do not receive W-2 forms. Instead, sole proprietors must pay themselves directly from their profits."
Edited 1 time(s). Last edit at 12/18/2017 07:38PM by LisaSTL.
"A W-2 is a form that company employees receive in January. It shows the income they earned and the amount of taxes that were deducted. Employees need these forms to complete and process their annual income taxes. Sole proprietors of businesses are not eligible to receive salaries, as it is prohibited by law. These small business owners also do not receive W-2 forms. Instead, sole proprietors must pay themselves directly from their profits."
Equal rights for others does not mean fewer rights for you. It's not pie.
"I prefer someone who burns the flag and then wraps themselves up in the Constitution over someone who burns the Constitution and then wraps themselves up in the flag." -Molly Ivins
Never try to teach a pig to sing. It's a waste of your time and it really annoys the pig.
"I prefer someone who burns the flag and then wraps themselves up in the Constitution over someone who burns the Constitution and then wraps themselves up in the flag." -Molly Ivins
Never try to teach a pig to sing. It's a waste of your time and it really annoys the pig.
Edited 1 time(s). Last edit at 12/18/2017 07:38PM by LisaSTL.
Sole props who are Independent Contractors should NOT be getting w-2 forms. ICs should be getting 1099s. W-2as are solely for those who earn a salary or hourly wage or are EMPLOYEES paid by piecework. MSers are IC, except when the shop in NV, where they must be employees to be legal. NC MSers will actually get w-2 forms for their NV shops only.
Based in MD, near DC
Shopping from the Carolinas to New York
Have video cam; will travel
Poor customer service? Don't get mad; get video.
Shopping from the Carolinas to New York
Have video cam; will travel
Poor customer service? Don't get mad; get video.
There is very little/no change going to happen since MS income is reported on Schedule C. No change in Fica taxes. Keep documentation for all the deductions off of the 1099 income.
Until we know what is in the reconciliation bill, we cannot say there will be no other changes.
Equal rights for others does not mean fewer rights for you. It's not pie.
"I prefer someone who burns the flag and then wraps themselves up in the Constitution over someone who burns the Constitution and then wraps themselves up in the flag." -Molly Ivins
Never try to teach a pig to sing. It's a waste of your time and it really annoys the pig.
"I prefer someone who burns the flag and then wraps themselves up in the Constitution over someone who burns the Constitution and then wraps themselves up in the flag." -Molly Ivins
Never try to teach a pig to sing. It's a waste of your time and it really annoys the pig.
[www.irs.gov]
you're not earning sole proprietor wages as a MS by definition since it's a 1099, non-employee wage.
Sole proprietor is a W2 paid self-employed person. The only way to have mystery shopping wages as a sole proprietor would be to have 1099 wages issued to your company, then pay yourself on W2s.
Back to the topic: Your combines wages determine your tax bracket, and there's no different scale for a second job or freelance earning.
you're not earning sole proprietor wages as a MS by definition since it's a 1099, non-employee wage.
Sole proprietor is a W2 paid self-employed person. The only way to have mystery shopping wages as a sole proprietor would be to have 1099 wages issued to your company, then pay yourself on W2s.
Back to the topic: Your combines wages determine your tax bracket, and there's no different scale for a second job or freelance earning.
A sole proprietor is paid the same as an independent contractor, they are not paid wages as an employee, no deductions are taken and their clients do not pay the employer portion of their taxes. The link you provided just lists the possible forms needed. Those referring to employees would be if the sole proprietor hired employees, not for themselves.
Equal rights for others does not mean fewer rights for you. It's not pie.
"I prefer someone who burns the flag and then wraps themselves up in the Constitution over someone who burns the Constitution and then wraps themselves up in the flag." -Molly Ivins
Never try to teach a pig to sing. It's a waste of your time and it really annoys the pig.
"I prefer someone who burns the flag and then wraps themselves up in the Constitution over someone who burns the Constitution and then wraps themselves up in the flag." -Molly Ivins
Never try to teach a pig to sing. It's a waste of your time and it really annoys the pig.
Depends on how much you make, but for most under 6 figures, it will be less. If you're one that doesn't itemize, the increase in standard deduction will help. My kid paid a lot last year on his scholarships. Since he doesn't have other income, he'll do a lot better this year with the increased deduction. We itemize and our tax bracket will be 3% less, maybe; going to try it both ways (standard and itemized) since the standard deduction almost doubled.
Edited 1 time(s). Last edit at 12/19/2017 08:29AM by iShop123.
"Let me offer you my definition of social justice: I keep what I earn and you keep what you earn. Do you disagree? Well then tell me how much of what I earn belongs to you - and why?” ~Walter Williams
Edited 1 time(s). Last edit at 12/19/2017 08:29AM by iShop123.
Someone doesn't understand taxes. Not that I'm naming mames or anything.
There are reasons that a body stays in motion
At the moment only demons come to mind
At the moment only demons come to mind
@bgriffin wrote:
Someone doesn't understand taxes. Not that I'm naming mames or anything.
Wait, are you saying anyone here knows taxes? I'm hanging out with JK Lasser (puts out tax books) when this all gets finalized. I still don't know taxes -- bwahaha. That 5 year education in Business Administration left me with more questions than answers. Cost Accounting and Decision Sciences only left me twitching my eye a little.
MegglesKat
@mikemikemike wrote:
Sole proprietors by definition receive wages on a W2. 1099 recipients would have to go through a bit of gymnastics to give themselves W2s.
Does anyone here report as a sole proprietor??
Sole proprietors by definition cannot receive wages on a W2.
If you receive wages on a W2 you are an employee, which takes away both the reporting requirements of a business and the ability to take most buainess related deductions from your income.
A sole proprietor is a business entity type. Anyone who reports business income on a schedule C reports as a soleproprietorship. Any other business classification would require a different form.
The only way a mystery shopper would not report income as a sole proprietor would be if they formed a corporation or LLC and paid themselves via W2. For that scenario (and I know shoppers who do this) then the shopper would have regular employment income from the W2. At that point, depending on their business classification, either their business would file a seperate return or they would have pass through income or loss from their business.
There are reasons that a body stays in motion
At the moment only demons come to mind
At the moment only demons come to mind
@iShop123 wrote:
Depends on how much you make, but for most under 6 figures, it will be less. If you're one that doesn't itemize, the increase in standard deduction will help. My kid paid a lot last year on his scholarships. Since he doesn't have other income, he'll do a lot better this year with the increased deduction. We itemize and our tax bracket will be 3% less, maybe; going to try it both ways (standard and itemized) since the standard deduction almost doubled.
Without knowing the details of the new tax plan, there is no way anyone can say either way. The tax people, (JKLassiter, Turbotx, etx.) are still trying to figure things out. Remember, the public was not privey to all the events in the new tax form. For a lot of it, we had one set of politicians saying the we would end of paying more and the other set of politicians saying we would end up paying less. I know what my bet is on, but I will wait till April 2019, 2020.... to see if I am right. But then, what difference does it make 
I cast my vote like we all should, so I can jump up and down and shout with joy or I can sit and be grumpy.
I cast my vote like we all should, so I can jump up and down and shout with joy or I can sit and be grumpy.When you learn, teach, when you get, give. Maya Angelou
I have been accused of being Shrek like at times.
Hey now, you're a rock star, get the show on, get paid.
"Let me offer you my definition of social justice: I keep what I earn and you keep what you earn. Do you disagree? Well then tell me how much of what I earn belongs to you - and why?” ~Walter Williams
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