Life As Last-Minute Taxpayers Know It
Inquiring minds want to know: What does the taxpayer who waits till April to file their taxes? Don’t know where you stand amongst the crowd of last-minute tax filers? Then just look here.
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Aleta, it’s unbelievable to me that your husband would be filing self-employment income on Schedule C of the form 1040 without paying self-employment tax on Schedule E of the form 1040, and that this would get by the IRS. I think you’ve left something out of the story.
Dear sir,
When my (self employed) friends tax guy died, I started doing his taxes with turbo tax. I thought I was doing a very proficient job (I separated, calculated everything) and bought Turbo Tax and followed all the questions.
I did this for 4 or 5 years; thought everything was ok.
Eventually his health became an issue; (had a defibulator put in, etc) and went to apply for disability (He had paid into for 50 years I think) and was denied due to the lack of credits (since I had been using TT. Doesn’t do any good to ask now, what did I do wrong.
I was shocked to find out that he didn’t have enough credits and it was since I had been doing his taxes. I am devastated. Can we somehow go back and re-do the taxes by a professional? Can he somehow still get disability at all?!?
I am devastated as I think I obviously did not know what I was doing and now it appears my fault that he is lacking the credits. He REALLY does need the disability now (he collects $724 in his social security) but I feel I should do something as I am probably to blame for this.
I know you are probably busy, but any help is greatly appreciated.
Many thanks and joy to you!
Aleta
I’ll tell you why I wait until the last minute to pay my taxes – because I owe the IRS money. Why should I pay them 1 minute early?
Hi Josh,
Aleta here again.
I was just reading some comments by Tiffiny Smith on the main page. She was advising someone:
First, since you are no longer an employee, you’ll need to pay your own income and Social Security taxes. Most taxpayers with self-employment income make quarterly estimated tax payments based on the amount of income the business earns.
Self-employed taxpayers also need to pay self-employment Social Security and Medicare taxes by filing Schedule SE. The rate is 15.3% of your self-employment earnings. But you get to deduct half of those taxes on your 1040 as an adjustment to income.
Just wondering, if your deductions were more/about the same as your earnings, how would you know that you had to pay in the self-employment ssi and medicar taxes? Please don’t get me wrong; I am just trying to understand how I could have used the tax software for so many years and not been aware of, or had seen the place to enter what was necessary to pay into ssi & medicare? Just trying to understand how I missed such an important thing (or perhaps I didn’t understand when I did see it)
Do mean to yak a cha, just worried that I didn’t see this, or understand it, and that it totally escaped me. I love Turbo Tax & hope I get this person out of this mess that he is in because of my stupidity!
Joy to you!
Aleta
Sorry that got messed up above! lol
Inquiring minds want to know: What does the taxpayer who waits till April to file their taxes?
FYI (You didn’t finish this sentence!) You might want to read that incomplete sentence & have someone change it =)
I LOVE Turbo Tax! But somehow (since my tax guy died 5 years ago & I started using Turbo Tax) I somehow did not put enough credits into Social Security so disability would be possible. After paying into Social Security for 52 years, needless to say, there was disappointment that I somehow missed this area (?!) How could I have missed that? I am disappointed and embarrassed that having recommended Turbo Tax to everyone – including the lady at WallMart the other night – that I >SOMEHOWFREE< services in the past and the FREE extentions, etc.How wonderful is that!!?? I have (and will) recommended TT as much as I can (but with a careful notation if the person is in business for themselves like us)