Didn't pay any taxes for independent contractor works for the last six months. What to do?
Hi All, I am a freelance software testing engineer and by working on a project for the last six months, i made around 12K. I worked on it from May to October. I want to pay my taxes now as I got paid and I want to do it myself or through an accountant. Please suggest me how to do it and even i lost my invoice, so i don't have any relevant paper of my income. Regards, Sam
United Kingdom - 4 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
You wont need the invoice for you have the cheque or at least a record of it in your bank statement! You need an accountant. When you have found him/her, he/she will tell you what you need to give them and what they are gonna charge you and you can turn it all over to him/her! How nice not to have to worry about it. However do make sure that they actually do the work and pay your tax bill, for the responsibility is still yours!
Answer 2 :
Get duplicate invoices if you can't get someone to fill your taxes for you ,some will do it ,some will not.You will have quite a few dollars to pay in taxes i hope you saved some.
Answer 3 :
First reconstruct your income. Ideally, you deposited each payment in full in a checking or savings account and didn't do cash back deposits so they are short. In the US, what you need to do is figure out if you must pay estimated taxes if you will owe more that $1,000 in taxes next April 15th. If you have no other income or a similar amount for the rest of the year, you are unlikely to owe more and can just file. You have missed the first 3 estimated dates and thus will have to pay by January 15th if you are going to pay. You need to work out the Schedule C to see what expenses you can deduct and the SE for Social Security taxes. As an independent contractor, you have to pay both sides of the tax (what the employer pays plus what the employer deducts) but as a self employed person, you can deduct about half of it on the Schedule C just like an employer does. It isn't hard, just tedious.
Answer 4 :
Calculate your gross income and deduct all of your buiness expense and file a form 1040ES for the estimated tax due. You will owe 15.3% for your self-employment social security and medicare plus income tax which varies based on exemptions, deductions and other income aside from that work. The company you worked for should issue a 1099MISC, so they would have to keep a record of what they paid you, so you could call their accounting department to see what you made. You could also add your bank deposits if you deposited the money. You could look through your bank statements and check stubs to see what your income and expenses were.
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